Which of the Following Statements Is True of Article 2

question 47

Multiple Choice

Which of the following statements is true of Article 2?

• A) Article 2 does not apply to contracts for the sale of goods.
• B) Article 2 applies to bonds, information, and other intangibles.
• C) Article 2 does not apply to service contracts.
• D) Article 2 applies to contracts for the sale of real estate or stocks.

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Definitions:

Present Value

The today's value of a sum of money expected in the future or successive cash flows, considering a determined rate of return.

Compound Interest

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Future Value

An estimated future value of a present asset, projected by applying an anticipated growth rate over time.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.